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L'Oral VRIO / VRIN Analysis | Assignment Help
What is VRIO / VRIN Analysis ?
VRIO stands for – Value of the resource, Rareness of the resource, Imitation Risk, and Organizational Competence.
VRIO is a resource focused strategic analysis tool.
To build a sustainable competitive advantage the resources that –casename— needs to be valuable, rare, and difficult to imitate. Secondly the –casename— needs to possess capabilities, organizational structure, and culture to optimize the available resources usage. VRIO analysis can help organizations such as L'Or
Order a L'Or
What is a Valuable Resource for L'Oral? Defining Valuable in VRIO
A resource or capability is considered valuable for L'Or
What are Rare Resources for L'Oral? Defining Rare in VRIO
In an industry that L'Or
What is a Inimitable (Difficult to Immitate) Resource for L'Oral? Defining Inimitable in VRIO
A valuable and rare resource can provide a competitive advantage to L'Or
What is a Organization for L'Oral? Defining Organization in VRIO
Even if the L'Or
Resources | Value | Rare | Imitation | Organization | Competitive Advantage |
---|---|---|---|---|---|
Talent to Manage Regulatory and Legal Obligations | Yes | No | Can be imitated by competitors | Yes | Not critical factor |
Sales Force and Channel Management of L'Or |
Yes | No | Can be imitated by competitors | Still there is lot of potential to utilize the excellent sales force | Can provide L'Or |
Brand Positioning of L'Or |
Yes | No | Can be imitated by competitors but it will require big marketing budget | Yes, the firm has positioned its brands based on consumer behavior | Temporary Competitive Advantage |
Successful Implementation of Digital Strategy at L'Or |
Yes, without a comprehensive digital strategy it is extremely difficult to compete | No, as most of the firms are investing into digitalizing operations | Can be imitated by competitors | One of the leading player in the industry | Digital strategy has become critical in the industry but it can't provide sustainable competitive advantage to |
L'Or |
Yes, 23% of the customers contribute to more than 84% of the sales revenue | Yes, firm has invested to build a strong customer loyalty | Has been tried by competitors but none of them are as successful as L'Or |
L'Or |
Provide L'Or |
Opportunities in the Adjacent Industries that L'Or |
Can be valuable as they will create new revenue streams | No | Can be imitated by competitors | All the capabilities of the organization are not fully utilized yet | Has potential |
Position among Retailers and Wholesalers – L'Or |
Yes, L'Or |
Yes, L'Or |
Difficult to imitate though not impossible | Yes, over the years company has used it successfully | Sustainable Competitive Advantage |
Brand awareness of L'Or |
Yes, the brand awareness of L'Or |
Yes, L'Or |
No | L'Or |
Sustainable Competitive Advantage |
Opportunities for Brand Extensions for L'Or |
Yes, new niches are emerging in the market | No, as most of the competitors are also targeting those niches | Yes can be imitated by the competitors | Brand extensions will require higher marketing budget | Temporary Competitive Advantage |
Product Portfolio and Synergy among Various Product Lines of L'Or |
Yes, it is valuable in the industry given the various segmentations & consumer preferences. | Most of the competitors are trying to enter the lucrative segments | Can be imitated by the competitors | The firm has used it to good effect, details can be found in case exhibit | Provide short term competitive advantage but requires constant innovation to sustain |
Customer Community of L'Or |
Yes, as customers are co-creating products | Yes, the L'Or |
It is very difficult for L'Or |
Going by the data, there is still a lot of upside in building on L'Or |
Providing Strong Competitive Advantage |
Opportunities in the E-Commerce Space for L'Or |
Yes, the e-commerce space is rapidly growing and L'Or |
No, most of the competitors are investing in IT to enter the space | The AI and inhouse analytics can be difficult to imitate | It is just the start for the organization | In the long run it can provide sustainable competitive advantage |
Access to Critical Raw Material for Successful Execution | Yes | Yes, as other competitors have to come to terms with L'Or |
Can be imitated by competitors | Yes | Providing Sustainable Competitive Advantage |
Vision of the Leadership for Next Set of Challenges | Yes | No | Can't be imitated by competitors of L'Or |
Not based on information provided in the case | Can Lead to Strong Competitive Advantage |
L'Or
Books and References
Ahir Gopaldas and Anton Siebert (2022 July August) "What You’re Getting Wrong About Customer Journeys",
Harvard Business Review , 92
Linda A. Hill, Emily Tedards, and Taran Swan (2021) "Drive Innovation with Better Decision-Making", Harvard Business Review 86
Dyer, J. H., & Hatch, N. (2004). Using Supplier Networks to Learn Faster. Sloan Management Review, 45(3), 57–63
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120
Dyer, J. H., Kale, P., & Singh, H. (2004, July–August). When to ally and when to acquire. Harvard Business Review, 109–115
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